How to protect 5K of income from the taxman before April?

vacheron

Cheers everyone for your input and advice.

I guess it sits between the areas of investing which I am comfortable with which for me generally fall into 2 camps.

1: Steady drip feeding over years and years into funds taking advantage of Pound cost averaging and generally ignoring the current fund value as long term growth is important.

2: Real time trading of large values of shares in individual companies which I have followed closely and researched for a significant amount of time.

I think Linton touched on something someone else at work had also proposed of initially investinmg into effectively a cash fund in the portfolio and then transferring that across by a standing instruction, but following the opinions here here I think I'll just plough it straight into the main fund and be damned! Thanks.

vacheron

pjcox2005 wrote: »

Just to check a couple of points, moving into a 40% tax rate won't mean you are required to submit a tax return where that income is from employment and automatically dealt with by PAYE/NI.

It was partly that, which was only based on what I have been asked to do by HMRC in the past. But mainly it is that I just don't want to give away 40% of my earnings if I can avoid it

Also, when you say above upper earning threshold have you taken into account your personal allowance. i.e. for most they will start paying 40% tax on income over £41,866?

Yes, it includes my personal allowance and also my existing 5% salary sacrifice and an additional overpayment to the pension I make each month, extrapolated to March 2015.

It maybe that it's still relevant to look at pension contributions or other salary sacrifice as there could be a tax saving there, but thought I'd clarify your reasoning (e.g. on tax return) in case it's not an issue to be concerned about.

I would have done child care vouchers too, but it's a bit late with the small amount you can invest... plus the slightly bigger problem that my company doesn't do it!